A.M. Best Assigns Ratings to Caregivers United Liability Insurance
Company, A Risk Retention Group

January 22, 2013 02:26 PM Eastern Standard Time

OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best Co. has assigned a financial strength rating of A-
(Excellent) and issuer credit rating of "a-" to Caregivers
United Liability Insurance Company, A Risk Retention Group (CULIC)
(Charleston, SC). The outlook assigned to both ratings is stable.

The ratings reflect CULIC’s excellent risk-adjusted capitalization,
profitable underwriting and overall operating results in recent years as
well as its niche expertise as a provider of professional and general
liability insurance products to nursing homes and assisted living
facilities in Mississippi.

CULIC writes only professional and general liability coverages for
long-term care facilities in Mississippi. The company’s focus on writing
profitable risks continues to generate solid underwriting profits and
overall operating results. This has enabled CULIC to maintain excellent
risk-adjusted capitalization for its current business profile. The
company's extensive market knowledge of the extended care business in
Mississippi, along with its low cost operating platform, provides it
with a competitive advantage and enhances member retention.

Partially offsetting these positive rating factors is CULIC's limited
business profile and its associated jurisdiction and regulatory risks.
CULIC is susceptible to the inherent market risks associated with being
a single state, mono line insurer, as it relates to legislative (tort)
reform, regulatory challenges and loss cost trends.

While the outlook is stable, factors that could contribute to rating
enhancement include continued favorable performance on both an
underwriting and overall basis and the consistent generation of surplus
and maintenance of CULIC’s strong capitalization, while prudently
managing its business profile risks.

Factors that may lead to negative rating actions include a sustained
decline in the company’s underwriting performance, a change in the tort
environment or legislative/judicial landscape and substantial
deterioration in its risk-adjusted capitalization.

The methodology used in determining these ratings is Best’s Credit
Rating Methodology, which provides a comprehensive explanation of A.M.
Best’s rating process and contains the different rating criteria
employed in the rating process. Key criteria utilized include: “Risk
Management and the Rating Process for Insurance Companies”; “Alternative
Risk Transfer (ART)”; “Understanding BCAR for Property/Casualty
Insurers”; and “Catastrophe Analysis in A.M. Best Ratings.” Best’s
Credit Methodology can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is the world's oldest and most
authoritative insurance rating and information source. For more
information, visit www.ambest.com.